Here’s my theory. I’m 38. Worked in tax accounting for 15 years. Every year our firm would hire 4 staffers for tax season out of college, and fire the least productive 2. I worked at 2 other firms, same thing. The 35-40 year old CPAs largely don’t exist because firms have FIRED OFF half the potential workforce. Best part, they fire them exactly 89 days after their start date, so they wouldn’t be eligible to file unemployment. So you graduate, put in 60 hours a week for 3 months straight, and on the day the crazy hours end you get fired. Decades of greed on the part of the partners, and now it’s come back to bite them.
Pay - it’s literally just pay. Public accounting is a pyramid scheme that’s been abused to this point by firm owners. The AICPA isn’t quite innocent here, in my experience over my career, they haven’t done much to help all of us (their members). I know I’m not renewing my AICPA membership when it comes up. It’s on this next generation of firm owners to make a better offer for talent to join our industry.
I’m not in the profession but I’m sure it’s definitely pay. One day I was curious and killing time, I was on Indeed looking at pay for accounting jobs. Definitely felt they could be higher. Controller $110,000; seriously? Senior accountant $89K? GTFO! These were NYC job listings. There were numerous listings like this.
@@manyogurt4645most people on the planet don’t make that kind of money bro chill out. Complaining about 75-80k is crazy when it’s a 4 year degree and maybe an extra year for a cpa
It's both pay, and the fact that hiring managers don't understand what "entry level" means. They'll post an entry level AP job, and list the minimum qualifications as 2-5 years of experience. The problem is... everyone wants that same 2-5 years. Every firm wants the experience. No firm wants to work with new accountants.
I worked as a federal accountant for ten years while on active duty, where we don’t have the same stringent requirements as the public sector does. Despite ten years of experience as an accountant, none of my work history counted towards transitioning to the public sector as a CPA. Many companies I spoke to about lateral moves seemed to expect me to already have a CPA given the duties and responsibilities we undertake in our field, but that’s a whole lot of education that doesn’t necessarily benefit us in a significant way while we’re active duty. There are likely thousands of other transitioning service members who could be more than happy to move to public sector accounting if it weren’t for having to start at zero again. Many of us move to other fields as a result of the lack of support for federal accountants.
Federal audit both internal (omb a123) and external have lots of opportunity. Another thing you could consider is working for a firm that has support contracts with one of the OIGs. Also there is Federal Consulting that a lot of firms do. If you are interested in audit big 4 does a lot of that and deloitte and Accenture do a lot of consulting. Your background would be a good fit for many of these opportunities. Another thing you could do is IT Audit or Compliance. All you need is a CISA. IT Audit is not that technical but lots of writing and project management and pays well. Think unexperienced kids fresh out if college make over 70k with no experience. 3 years gets you around 100k or more.
I graduated with a Bachelors at a small state school, completed my 150 hours by taking mostly online classes at my local community college while working in public accounting in my first job out of school. I only had to take 2 or 3 in person as required by my state. It was not too difficult. My college tried to push the Masters program on me but I am glad I did not do it. I passed my CPA exam without any failures using a CPA study guide like Becker (I can't remember which) that my firm paid for. I never cracked open one book, all test questions, every day before work. Overall it was not too difficult. I would not want to do it again, but if I could go back, I wouldn't change the path I took and I am glad I did it.
The young generation of aspiring accountants/CPAs do not see the value of 60-84 hour weeks, lower salary per hour worked, increasing workloads and stress, lack of relatable mentors and more complex compliance standards in public accounting. Unfortunately the accounting profession has a stigma and image problem that is universally viewed by a lot of people outside the profession. I am planning to leave the profession after 20 years+ (Big 4, active cpa, corp tax compliance, sec reporting, fin reporting at tech firms). I never had any passion for accounting during my career. It helped pay my bills. Good luck to you!
Hello, in alot of these comments im finding people talk down on public accounting. Could you explain why public is so bad compared to private? I have a very elementary level of understanding but keen to learn more.
@@jag732 Public accounting: long hours including weekends, full-time job while preparing for exams, high turnover of mentors/seniors/managers, stuck auditing specific areas only (revenue/oper expenses/fixed asset/stock based comp/payroll/cash), significantly lower pay vs private industry, constant pressure of tracking billable hours, frequent travels to client's site, incentive to find client errors/mistakes vs client's view that auditors are requesting too much info/samples, and mental health issues for a very demanding profession with a lot of young inexperienced auditors. Auditing public-traded companies is a very exhausting endeavor by the audit team.
@Jag732 my professor worked at Deloitte (big 4 firm) for a couple years before becoming a professor. He was a tax accountant there, and there are a lot of expectations to work long hours (like OP has mentioned) with not enough compensation. Also, at large firms, you are merely a cog in the machine. It is difficult to work up as a partner because you will have to endure long and grueling work loads and hours before you reach partner status/eligibility. It is not a sustainable way of life for some. You will have to sacrifice a lot of weekends and nights. At private firms, you have a personal relationship with your superiors and can become a partner more quickly because your superiors are more likely to notice your presence (if you work hard enough). You may find a more balanced life at a private/smaller firm. However, it is good to earn experience at a large firm in the beginning of your career because corporate training is valuable, and private firms do value this if you choose to transition away from public to private in your career.
I'm a senior about to graduate with my undergraduate in accounting. In the past my school had many easy paths to reach 150 hours for accounting students, but last year they took those opportunities away to try and increase their enrollment in the MAcc program which screwed us upperclassmen who were expecting to graduate with 150 this upcoming May. Seems like some universities are trying to exploit the few of us who actually want to become CPA's...
A lot of the big four firms are offering programs to get the credits you need for the CPA. My remaining credits were earned for no cost through EY’s program.
We're working more hours than we're clocking and as someone who went from a career as a dog groomer to a career in accounting (weird shift, i know) i can say from experience that accounting is really bad for your mind. Sitting in front of a spreadsheet all day and barely interacting with other people is very dehumanizing--it warps your brain. Whenever I take a few days off, 4-5 in a row, the "real me" starts to wake up again. It's night and day. I'm like a zombie during my workweek, depressed and muted and not doing much b/c the emotional energy has drained out of me. When that dude starts crying, i totally get it. My first job was full of great people and I was learning a lot but never saw the sun, and barely saw or spoke to other people b/c of the high sided cubicles--6 months in and I was severly depressed and had to get out of there. I'm somewhere that's much better in terms of environment, plus it's hybrid, but the hours are still killing me b/c upper management doesnt seem to care that we're understaffed. They have a "hiring freeze", but it only seems to apply to our department. I'm thinking about an exit but I dont know what I would do instead.
I can relate to this. I also hunger for socialization despite thinking I was an introvert my whole life. I was recently let go from my firm and also question how my experience can be translated to private, government, or anywhere else? It can't, I could open my own firm but I still need more experience.
Before our modern information era (I graduated in 2008 when social media was just getting started), college students were much more in the dark about the profession and what to expect on the other side of graduation. But there was still the same turnover issues. The expected practice was 3-5 years and bounce. Industry turnover of 20%+ was an acceptable "standard." The cohort I started with mostly left for private as soon as the economy recovered from 2010-2011. The problem goes back decades. This isn't a new problem the industry is suffering from because of a narrative on social media. The industry is suffering the consequences of it's own practices that it can't hide anymore. They're trying to blame the messenger.
When I was in college in 1993-1997, it was just understood that CPA was a path to a “stable” career. Tech barely existed as a road for finance/econ/accounting majors. The internet changed everything.
From a step back observing the trend. I went to school in 2004ish to work in IT/network engineer. Currently technology sector is saturated and less demand for talent as shown in the layoffs.. Interesting how your generation was advise to do finance/econ and mine was advise to do technology yet in a ten year span both are no longer demanded. A family remember was a PA in 2010 and issues with the hours/pay, saturated PA/NPs market. Just like the internet, AI changes things too.
@@TheSeaOfAsher I'm deciding what offers to study in uni, and funny enough its between CS and business (accounting). I don't know what to pick at this point.
Here's the change: You start your own tax filing business on the side and build from there over a course of a few years until your income can replace the income from your job. Just file people's taxes for them, your average mom and pop. (Context: I work in wealth management as a career outside Atlanta and I know a guy who did what I just described. He makes $100k a year and only works 4 months out of the year.)
I studied for CPA, couldn't pass the exams. Mainly because: 1. no work experience to understand what accounting is at the time. 2. Language barrier, my English wasn't sufficient to understand some questions, even now, I still have difficulties time to time. 3. I'm not good at taking exams in general. After over two years full cycle accounting working experiences, I still don't have the confidence to take the exam (with studying of course). But I appreciate accounting experiences deeply. Now I work in corp Finance, I have to say that accounting is under-appreciated by the corporations, outsourcing accounting functions doesn't always work. There's no technical barrier for any accountant to perform Financial analysis, however, most financial analysts don't understand the basic principles for accounting.
CPA with 15 years of experience here. Public accounting isn't worth the trouble. Private accounting is more money and better work-life balance. Big 4s should be begging people to work for them. The focus should be on first work-life balance and then compensation. A CPA shouldn't give a damn about staying relevant, I won't get fired because they need me, and it's nonsense that they'll hire someone in India to do my work, that doesn't happen in private acctg for many reasons
@lordfarquaad1701 Getting the first job might be difficult, especially if you didn't get an internship. Once you have 2 years of experience and make sure to leave in good standing with previous employers, it should be fine. Offshoring happens, but if you don't get a job in acctg it is not because of it
Hi! Can I ask what role you went into after graduation? I recently did a busy season internship at a big 4 and I'm not really sure if public accounting is the path for me 😭 so I would love to hear more about how you went about your career given that you mentioned public accounting isn't worth it
It's unfortunate that college always tries to sell students to get a job in public acctg preferably at a Big 4... It's good experience, but the hours, stress and toxic environment don't make it worth it. Basically, I just applied for roles online. References are super important, even if you do good during your interview your references will get you to the finish line. So whatever you do, try to leave in good terms. I think an internship from the Big 4 will look good. Frankly, under regular circumstances you shouldn't have any problems looking for work, but for what i've been hearing the job market is not as healthy as people say in the news. Focus on building your resume with work experience. At the beginning of my career, I took temp work from Robert Half, and I did my best; the employer was so satisfy that they kept me 18 months until I eventually move on. That was almost 15 years ago... I am currently working for a hospital in CA, I used as one of my references the employer from that first job. Don't burn bridges, even if you don't like the people you work with always make sure that they'll speak highly of you I know is tough right now, hang in there and be persistent. @@gamerio9945
I see a lot of the big public US companies in private industry hire accountants from India and Mexico and force them to work "North American" hours just because they can pay them less because of the COL adjustments. The few US accountants/ CPAs that do get hired are called upon to be project managers to "babysit" their overseas counterparts and micromanage them by asking "where this report is" or " where are the deliverables?". Today's US accountants in private industry are more like PMs and not doing any of the "accounting" technical work.
It’s looking like you may get the opposite problem. They are continually opening up the cpa exam to international students and are working to outsource it. This is the main reason they dropped the written part of BEC, to make it easier for non English first speakers. Look at the number of cpa candidates in India for instance, that’s your competition. And they require a far less salary.
Working as an IRS Revenue Agent is a high pressure job for very modest pay. But over the years, the IRS has created a multitude of “Analyst” and “Policy” jobs which pay significantly more, with vague requirements and little pressure. Not surprisingly, many R.A.s have shifted to these cushy jobs, and the agency is having difficulty backfilling the accounting positions.
I work for the State as an auditor. The previous generation screwed up the accounting profession big time. Our agency has major retention issues. They want 150 hrs (MBA candidate more than likely) and a CPA license to make 52k a year 😮.
That sounds like a state by state issue because my state only requires a bachelor degree to work as a state auditor unless you want to move up to upper management. It's about the same pay as your state. I think we're starting to hit retention issues in the recent generation as the old generation starts to retire
Heard stories from people that used to work at big 4 accounting firms. The management expect overtime constantly, with low pay compare to similar education in other profession, and bad work life balance. I was told the only time they seems to be interested in offering you an raise or promotion is when you submit a resignation letter with another job ready.
As an MSA is tax and degree with accounting I picked the right degree for job security but I do also wish we got paid more. I’m unsure if I want to get that CPA license until I see some actual benefits for having it. I know that I should be doing it but just the sheer will to do an extra year of school and the pay off sets each other.
It's outsourcing and automation. A lot of A/P and A/R jobs are being outsourced to India and the Philippines. Yes, these are entry level jobs but these are very important jobs. Accounting college grads need these jobs to gain experience. Regarding automation - a lot of the work can be automated and is in the process of being so. Look at every article or video regarding AI and Automation - Accounting is almost always on the list to be hit the hardest. And lastly, as others have mentioned, the pay. I honestly do not see the field lasting at all. And yet people are asking why there is a shortage?
You are speaking my language my friend! Would love to sync up and have this discussion. The industry definitely needs a reboot to something better for the CPA!
I wish colleges would drop all these useless classes and focus more on the profession. Instead of reading Kant or learning about the dust bowl which is high school work we could have been taught more things a CPA should know or even learn some of the common accounting software. This would make the quality of new graduates so much better.
If you want a college degree you have to learn college stuff along with the stuff you learn in your major. Do you want a job training program or a college degree?
@@HoosierCanuk obtaining a college degree should make you ready to take on an entry level positions in your field. So I would say I would want both. Most of my useful skills came from my internship. However, after 2020 I assume it’s even harder for students to get them. Haven’t had interns in my office since then.
The 150 hour issue is not the problem - I wouldn't be looking to get out of tax AFTER years of being a CPA if it was the 150 hours... What's more odd is that I question if there is any correlation between having a CPA and making more money? The one friend I have who never did his CPA makes about 50% more than me, I am in public and he's always been FP&A...
I'm a supervisory accountant for the fed and I also side hustle to keep my tax and public accounting skills in check. I absolutely don't need a CPA to do my daily duties but for me it's more about my exit strat from the Fed. What advice can you provide for a mid to senior career accountant looking to become a CPA? I bough the Becker CPA and Superfast CPA exam prep but find it hard to make time to study with 3 kids, Fed job and side tax practice.
I’m sure I don’t “need” a CPA but I think there may be some perceived value from the public. It will also make me competitive when it comes to government contracts. More than anything that’s the real driving force.
This is so good Logan! Man its hilarious to me what the AICPA and all these other governing bodies will blame the shortage/pipeline problems on. its like uhhh yes blame that IG account thats it!! Or the 150 credits. Blame em yesss thats it!! Naww I happily got my Masters in Tax that catapulted my career trajectory, I was fine sitting for 4 exams to get my license, its a right of passage its fine. What I was not fine with was doing all that and having a starting salary of $50K in a high COL state and working 70 hours a week. What I was not fine with was 5 years later after doing more or less the same I was at $88K while being beat on by schedulers while working 60+ hours and being in a toxic culture. That is the issue. Fix that and accounting wont have a bad rep. Or yea continue blaming some IG account that is hacking the pipeline lol
I'm about to go into a MACC personally to switch careers. Searching online often comes up with lots of personal accounts of people that highly pessimistic. Personally I just want a stable job at this point in my life that pays decent and lets me do my thing. People are so self righteous nowadays with career. Certain situations it's 100% valid, many others it's just people being angry for no actual good reason.
Previous accounting student here who made it to junior year and then realized I actually hated it and had no interest in it. Too many negatives within the profession compared to the supposed positives. None of the accounting students I met actually enjoyed what they were learning, they were only doing it for the money, and a lot of them seemed as depressed as I had been for a long time. I switched to IT and I’m much happier now. Until the industry is overhauled, I don’t see things getting better from what I experienced.
I completely agree, public accounting needs to change. I've been in this industry for years and it doesn't even pay people enough. It is to a point that if I ever have kids and they want to become CPA i'd tell them don't do it. If this field has to die to let those partners and clients know that we are not merely getting paid enough then so be it.
Partners know there is a serious staffing shortage across the country and they're holding onto their treasure for as long as they can get their hands on the vested pension that pays out ~18-25M over their retirement years. They don't really care if the industry will be in shambles 5-10 years down the road as long as they can get their bags. Same goes for the upper management in industry. Just holding onto the current structure that rewards the top as long as they can. They're just motivated by their agenda just as we are. It is unfortunate but it's merely just a symptom of late stage capitalism where everything is coming to a decline. Best we can do is fight for better environment but not get dissapoint with the natural course of event.
About to graduate this July with an accounting degree and so far had no luck with entry level accounting jobs. Most of them want big 4 intern experience or 3-5 years in the field. I didn’t have the opportunity to get an internship cause most wanted me to relocate and didn’t even offer housing accommodations so I turned most of them down. Even applying to bookkeeping or AR/AP roles want 5+ years of experience. Although I haven’t yet received my diploma I feel like I’ll be job searching for a while.
If there was really an accounting crisis, I would have a job already. I graduated college with my bachelor's in accounting 5 months ago and i still don't have an entry level position in the field. Every entry level position that i have looked at they want you to have at least a year or two of accounting experience which is crazy if you just graduated college.
Constructive advice: If it’s countable, like the number of persons, then use the word “fewer”; if it’s not countable, like sand pebbles on a beach, then use the word “less.” Fewer people… Less sand… I hope this helps!
Give me a Mach 1 Mustang, a photoshoot with Sydney Sweeney, a suspiciously large amount of dry ice, and I will solve the accounting image problem in a weekend. (I will take the Mustang across the border and you will never see me again😂😂)
Also note that countries like the Phillipines have a decline in accounting grads too, you already see some staffing firms do bidding wars for Pinoy CPAs. The decline in new CPAs is also taking into account global numbers too.
Unfortunately those of us on the job have to make up for the work not being done by the open positions. The company does not want to pay for the extra hours and work. The deadlines don't change if you are under staffed.
i regret ever getting into it. they pay is at the bottom of all professional jobs. dont expect to make more than $65k initially, basically the poverty line. the degree is worth less than soiled toilet paper. you get treated the worst in any company. they see you as a waste of money because you are just overhead. and because of that, they keep dumping work on you, constantly, the longer you stay. ultra mega long hours too. expect to work at least 12 hours a day without getting a dime in OT pay. that means you are basically working for minimum wage. also companies abuse their accountants more than any other field. accountants always feel like they are working for a toxic company. yes its easy to find another job, but who wants to continuously do that all the time? you literally have no life because of the long hours, and are not respected. everyone outside the field feels compelled that you can do their taxes for free. i should have become a real estate agent instead. what a horrible field accounting is. imagine being forced to sit in a chair for hours and hours day after day. guaranteed you will develop chronic illnesses.
If ur an accounting major and find the cpa exam difficult, then you must be really stupid. My bachelors was history and masters in tax, along with a few accounting courses at the community college. I passed on all 4 within the 18 months
The number of CPA students is dropping but it is in contrast to India and Pakistan because students pursuing the chartered accountancy profession are increasing and hence there is a high shortage of places for trainees in the top category firms. As a CA student from Pakistan who just completed my CA inter just now, I am concerned about the lack of opportunities for me to go to the Top category firms. And also these firms take work normally up to 8-12 hours a day and also give a monthly stipend of up to 70 US dollars....
I want to know your insights about accounting and information system does the job who chose this degree differs from bs in accountancy. Because the information I get in internet 8s very vague.
At a lot of schools, taking a dual concentration in those two will get to 150 credits. But at that point, it will be cheaper to just do accounting and then take credits at community college
Not that easy because first you have to increase for everyone who is already there, before you can offer it to new recruits. People coming in are getting paid more for knowing and doing less
if you have a cpa license from other countries, it's a win-win. Btw marketing and finance IS part of accounting. CPA is superior in all realms of finance and the marketing world.
Not all Accountants are in practice (Accounting firms) and not all countries use CPA. Here in the UK I don't think we have an Accounting crisis to be fair.
I think everyone is more infatuated with the tech field. The number of computer science students have gone up drastically in recent years. There is a huge surplus of people trying to enter software engineering and data science, making competition fierce in those fields. I'm one of those people who moved away from those fields and into accounting. People seem to think accounting is a major step down from tech. But in South Africa where I live, chartered accountants (equivalent of CPAs for my USA counterparts) are highly respected and paid extremely well.
After receiving my BS in accounting i went into the private sector, never public accounting. I wanted to take the CPA exam but didn't get around to it. Later in my late 30s I received a masters in Finance. For me, private is the way to go, I've worked my way up. Been a controller for several companies.
why the heck would anyone go into accounting? Every job post for an entry level position says they want 2+ years of experience, a bachelor's degree, and a starting salary of 40-50k. Subway in my town pays $19 an hour which means you don't fall into the salary trap and will actually make more if you work the same hours as an accountant will. I even see job postings for Staff Accountants that require a master's degree and a CPA with a starting salary of $55k. I understand there is a high ceiling in accounting and I am in no way advocating the fast food industry but an ambitious kid out of high school could be managing a location in 4-5 years and multiple locations within 6-10 years. Accounting used to be a prestigious career but they are just laughed at by tech and finance due to their barriers to entry and awful salaries.
The emphasis on the 150 hours seems to me to be a function of the current concern around cost of education. What people SHOULD be asking is “why was it that we moved to 150 hours?” The fact that we’re getting so far removed from the complete restructuring of the PA landscape in the wake of Enron, WorldCom (I mean we went from a Big 8 to Big 4, Arthur Andersen went POOF overnight!) is sad, not just because it makes me an Old.
I decided to take classes to get a cert in bookkeeping. I had to take Accounting courses. OK. Then COVID hit. Classes were moved online. No lectures. No teaching. Absolutely nothing. They offered an online study group, but they just gave us the answers. The department head said that THAT was no way to learn accounting, and promised his class would be better. He had an online weekly meeting where all he did was give us the answers. No teaching. What did I learn? Become a teacher.
I am cpa eligible but any of the study programs (Becker, etc) cost over two grand and each of the tests costs 350-400 a pop. They build the tests to actively make you hate yourself with a 50ish percent pass rate per test. So you’re taking an average of 6 tests. 4500 to 5 grand to go from where I am at with my 150 hours to cpa. Some companies may pay for it or reimburse. Mine does not.
CPA firms are fighting for recruits and are adopting hybrid models of 2-3 days working from home. Electronic information in today's age make this possible.
I have thought of getting a degree in accounting a second bachelors. I got my first degree when the pandemic hit in spring 2020, and I was 35, at the time. I feel the cause of this is the pay, you have to live in a big city, automation, and outsourcing. The accounting profession might be done because of things like intuit or Tubo tax and you just plug in your tax info on forms online and it's all calculated for you. The older generations don't use computers and so they are more of the need of customers in accounting., Once they die off and accounting programs become easier to use for complex taxes then the need for accountant's won't be as needed. Most careers and good paying jobs now require more experience and expect the job of 2 or 3 people with pay that is equivalent to pay at fast food. I also loved history and did not have a good experience when I earned my first bachelor's degree. What can I do with an accounting degree that is entry level, and will train you with no experience that has do with helping people with their financial problems?
@@ciello___8307 i say that because that is all I notice. I enjoy helping people but not on wealth. I wanted to get my bachelor's in accounting and in history.
I am 27 with 5 years of non accounting work experience, will the CPA help me to make a career switch?? considering my work ex. I am a bit skeptical about it.
Thanks for the content. I caught your interview on the Earmark podcast. You mentioned you have a template for price increases, etc. I'm following you here and on Twitter, and I would love to see any resources you have found useful! Please let me know how I can receive this. Keep it up!
Perhaps AICPA should take example from ACCA's model and become a stand-alone qualification. Requiring college is outdated, college itself is becoming more and more outdated. Who wants to start a career in tens of thousands of debt, when you can self-study for $5k in total and get a more relevant qualification?
What is the likely of me getting a job as an accountant with no experience or internship? I’m 45 years old and thinking of going for my B.S. in Accounting.
@@taxtelegraf I have a Bachelors in Public Relations and a Master’s in Elementary Education, so hopefully won’t have to take all the 150 hours required.
@@davidfernandez1354 If most of your other credits transfer and count as lower-level classes, you may need to take the core accounting classes. Some universities, such as Arizona State University, have an MACC/MTax boot camp for people without a background in accounting
@@davidfernandez1354 At the moment, I'm trying to speed-track my bachelor's (I'll have 84 or 87 credits by the end of the Fall Semester for 2024), with about 33 credits left after that in which I'll do a MACC.
The change is near. In 3 years or less from my home office pc, CoPilot will file my 1099s and LLC State and Fed returns and distribute K1s and on time. No more having to wait and wait for a call back only to endure sob stories and hysterical breakdowns. It’s pitiful
We shouldnt even have to do our taxes. Most personal filing is done by the government in other countries. The IRS already knows how much we make Intuit and turbotax is the reason why we have to do this shit
To be fair - it’s expected that the aicpa would be filled with boomers. I’m a young cpa and see no reason to join the aicpa. Nonetheless, there’s still a huge shortage of accountants. Good for us!
This guy doesn’t look like a CPA.
Looks like a Calvin Klein model.
Here’s my theory. I’m 38. Worked in tax accounting for 15 years. Every year our firm would hire 4 staffers for tax season out of college, and fire the least productive 2. I worked at 2 other firms, same thing. The 35-40 year old CPAs largely don’t exist because firms have FIRED OFF half the potential workforce.
Best part, they fire them exactly 89 days after their start date, so they wouldn’t be eligible to file unemployment. So you graduate, put in 60 hours a week for 3 months straight, and on the day the crazy hours end you get fired. Decades of greed on the part of the partners, and now it’s come back to bite them.
dam
That's down right evil
@@lavender123u it was standard practice. “We need to hire a staffer, so let’s hire 2 and keep the best one”.
Pay - it’s literally just pay. Public accounting is a pyramid scheme that’s been abused to this point by firm owners. The AICPA isn’t quite innocent here, in my experience over my career, they haven’t done much to help all of us (their members). I know I’m not renewing my AICPA membership when it comes up. It’s on this next generation of firm owners to make a better offer for talent to join our industry.
I’m not in the profession but I’m sure it’s definitely pay. One day I was curious and killing time, I was on Indeed looking at pay for accounting jobs. Definitely felt they could be higher. Controller $110,000; seriously? Senior accountant $89K? GTFO! These were NYC job listings. There were numerous listings like this.
@@manyogurt4645most people on the planet don’t make that kind of money bro chill out. Complaining about 75-80k is crazy when it’s a 4 year degree and maybe an extra year for a cpa
It's both pay, and the fact that hiring managers don't understand what "entry level" means. They'll post an entry level AP job, and list the minimum qualifications as 2-5 years of experience. The problem is... everyone wants that same 2-5 years. Every firm wants the experience. No firm wants to work with new accountants.
wow
Can confirm a large part of my generation just wants more pay.
I worked as a federal accountant for ten years while on active duty, where we don’t have the same stringent requirements as the public sector does. Despite ten years of experience as an accountant, none of my work history counted towards transitioning to the public sector as a CPA. Many companies I spoke to about lateral moves seemed to expect me to already have a CPA given the duties and responsibilities we undertake in our field, but that’s a whole lot of education that doesn’t necessarily benefit us in a significant way while we’re active duty.
There are likely thousands of other transitioning service members who could be more than happy to move to public sector accounting if it weren’t for having to start at zero again. Many of us move to other fields as a result of the lack of support for federal accountants.
Federal audit both internal (omb a123) and external have lots of opportunity. Another thing you could consider is working for a firm that has support contracts with one of the OIGs. Also there is Federal Consulting that a lot of firms do. If you are interested in audit big 4 does a lot of that and deloitte and Accenture do a lot of consulting. Your background would be a good fit for many of these opportunities. Another thing you could do is IT Audit or Compliance. All you need is a CISA. IT Audit is not that technical but lots of writing and project management and pays well. Think unexperienced kids fresh out if college make over 70k with no experience. 3 years gets you around 100k or more.
I graduated with a Bachelors at a small state school, completed my 150 hours by taking mostly online classes at my local community college while working in public accounting in my first job out of school. I only had to take 2 or 3 in person as required by my state. It was not too difficult. My college tried to push the Masters program on me but I am glad I did not do it. I passed my CPA exam without any failures using a CPA study guide like Becker (I can't remember which) that my firm paid for. I never cracked open one book, all test questions, every day before work.
Overall it was not too difficult. I would not want to do it again, but if I could go back, I wouldn't change the path I took and I am glad I did it.
You have a math brain. you're lucky to have a math brain. I don't have a math brain but I went to math brain....🥂 to math brains!
The young generation of aspiring accountants/CPAs do not see the value of 60-84 hour weeks, lower salary per hour worked, increasing workloads and stress, lack of relatable mentors and more complex compliance standards in public accounting. Unfortunately the accounting profession has a stigma and image problem that is universally viewed by a lot of people outside the profession. I am planning to leave the profession after 20 years+ (Big 4, active cpa, corp tax compliance, sec reporting, fin reporting at tech firms). I never had any passion for accounting during my career. It helped pay my bills. Good luck to you!
Hello, in alot of these comments im finding people talk down on public accounting. Could you explain why public is so bad compared to private? I have a very elementary level of understanding but keen to learn more.
@@jag732 Public accounting: long hours including weekends, full-time job while preparing for exams, high turnover of mentors/seniors/managers, stuck auditing specific areas only (revenue/oper expenses/fixed asset/stock based comp/payroll/cash), significantly lower pay vs private industry, constant pressure of tracking billable hours, frequent travels to client's site, incentive to find client errors/mistakes vs client's view that auditors are requesting too much info/samples, and mental health issues for a very demanding profession with a lot of young inexperienced auditors. Auditing public-traded companies is a very exhausting endeavor by the audit team.
@Jag732 my professor worked at Deloitte (big 4 firm) for a couple years before becoming a professor. He was a tax accountant there, and there are a lot of expectations to work long hours (like OP has mentioned) with not enough compensation. Also, at large firms, you are merely a cog in the machine. It is difficult to work up as a partner because you will have to endure long and grueling work loads and hours before you reach partner status/eligibility. It is not a sustainable way of life for some. You will have to sacrifice a lot of weekends and nights. At private firms, you have a personal relationship with your superiors and can become a partner more quickly because your superiors are more likely to notice your presence (if you work hard enough). You may find a more balanced life at a private/smaller firm. However, it is good to earn experience at a large firm in the beginning of your career because corporate training is valuable, and private firms do value this if you choose to transition away from public to private in your career.
@@jag732He literally just said it, read the comment again
Where will u be shifting your career? As I am Interested to shift my career in accounting too
I'm a senior about to graduate with my undergraduate in accounting. In the past my school had many easy paths to reach 150 hours for accounting students, but last year they took those opportunities away to try and increase their enrollment in the MAcc program which screwed us upperclassmen who were expecting to graduate with 150 this upcoming May. Seems like some universities are trying to exploit the few of us who actually want to become CPA's...
That's terrible!
Do the masters online at Western Governors University. If your state accepts the credits it's probably the cheapest option.
A lot of the big four firms are offering programs to get the credits you need for the CPA. My remaining credits were earned for no cost through EY’s program.
@@chandlerangol6718 What’s that program called?
Holy crap man thanks for that I might do it its literally 25K cheaper than ASU.@@first9299
We're working more hours than we're clocking and as someone who went from a career as a dog groomer to a career in accounting (weird shift, i know) i can say from experience that accounting is really bad for your mind. Sitting in front of a spreadsheet all day and barely interacting with other people is very dehumanizing--it warps your brain. Whenever I take a few days off, 4-5 in a row, the "real me" starts to wake up again. It's night and day. I'm like a zombie during my workweek, depressed and muted and not doing much b/c the emotional energy has drained out of me. When that dude starts crying, i totally get it. My first job was full of great people and I was learning a lot but never saw the sun, and barely saw or spoke to other people b/c of the high sided cubicles--6 months in and I was severly depressed and had to get out of there. I'm somewhere that's much better in terms of environment, plus it's hybrid, but the hours are still killing me b/c upper management doesnt seem to care that we're understaffed. They have a "hiring freeze", but it only seems to apply to our department. I'm thinking about an exit but I dont know what I would do instead.
I can relate to this. I also hunger for socialization despite thinking I was an introvert my whole life. I was recently let go from my firm and also question how my experience can be translated to private, government, or anywhere else? It can't, I could open my own firm but I still need more experience.
Before our modern information era (I graduated in 2008 when social media was just getting started), college students were much more in the dark about the profession and what to expect on the other side of graduation. But there was still the same turnover issues. The expected practice was 3-5 years and bounce. Industry turnover of 20%+ was an acceptable "standard." The cohort I started with mostly left for private as soon as the economy recovered from 2010-2011.
The problem goes back decades. This isn't a new problem the industry is suffering from because of a narrative on social media. The industry is suffering the consequences of it's own practices that it can't hide anymore. They're trying to blame the messenger.
When I was in college in 1993-1997, it was just understood that CPA was a path to a “stable” career. Tech barely existed as a road for finance/econ/accounting majors. The internet changed everything.
From a step back observing the trend. I went to school in 2004ish to work in IT/network engineer. Currently technology sector is saturated and less demand for talent as shown in the layoffs.. Interesting how your generation was advise to do finance/econ and mine was advise to do technology yet in a ten year span both are no longer demanded. A family remember was a PA in 2010 and issues with the hours/pay, saturated PA/NPs market. Just like the internet, AI changes things too.
@@TheSeaOfAsher I'm deciding what offers to study in uni, and funny enough its between CS and business (accounting). I don't know what to pick at this point.
Here's the change: You start your own tax filing business on the side and build from there over a course of a few years until your income can replace the income from your job. Just file people's taxes for them, your average mom and pop. (Context: I work in wealth management as a career outside Atlanta and I know a guy who did what I just described. He makes $100k a year and only works 4 months out of the year.)
Facts 💯
A.I won't replace this?
@@rasulsamad5860 most people can't install windows on their laptop... AI will help the business not the avrg guys for a long time
That’s my plan! Also plan on doing some bookkeeping/playing controller outside of tax season.
@@rasulsamad5860 Would you trust AI if the IRS sends you a letter?
I studied for CPA, couldn't pass the exams. Mainly because: 1. no work experience to understand what accounting is at the time. 2. Language barrier, my English wasn't sufficient to understand some questions, even now, I still have difficulties time to time. 3. I'm not good at taking exams in general. After over two years full cycle accounting working experiences, I still don't have the confidence to take the exam (with studying of course). But I appreciate accounting experiences deeply. Now I work in corp Finance, I have to say that accounting is under-appreciated by the corporations, outsourcing accounting functions doesn't always work. There's no technical barrier for any accountant to perform Financial analysis, however, most financial analysts don't understand the basic principles for accounting.
CPA with 15 years of experience here. Public accounting isn't worth the trouble. Private accounting is more money and better work-life balance. Big 4s should be begging people to work for them. The focus should be on first work-life balance and then compensation. A CPA shouldn't give a damn about staying relevant, I won't get fired because they need me, and it's nonsense that they'll hire someone in India to do my work, that doesn't happen in private acctg for many reasons
I’m a student still but sometimes I worry I won’t have a job when I hear about offershoring and all
@lordfarquaad1701 Getting the first job might be difficult, especially if you didn't get an internship. Once you have 2 years of experience and make sure to leave in good standing with previous employers, it should be fine. Offshoring happens, but if you don't get a job in acctg it is not because of it
Hi! Can I ask what role you went into after graduation? I recently did a busy season internship at a big 4 and I'm not really sure if public accounting is the path for me 😭 so I would love to hear more about how you went about your career given that you mentioned public accounting isn't worth it
It's unfortunate that college always tries to sell students to get a job in public acctg preferably at a Big 4... It's good experience, but the hours, stress and toxic environment don't make it worth it.
Basically, I just applied for roles online. References are super important, even if you do good during your interview your references will get you to the finish line. So whatever you do, try to leave in good terms.
I think an internship from the Big 4 will look good. Frankly, under regular circumstances you shouldn't have any problems looking for work, but for what i've been hearing the job market is not as healthy as people say in the news.
Focus on building your resume with work experience. At the beginning of my career, I took temp work from Robert Half, and I did my best; the employer was so satisfy that they kept me 18 months until I eventually move on. That was almost 15 years ago... I am currently working for a hospital in CA, I used as one of my references the employer from that first job.
Don't burn bridges, even if you don't like the people you work with always make sure that they'll speak highly of you
I know is tough right now, hang in there and be persistent.
@@gamerio9945
I am at 38 now I want to go to CPA after 12 years experience, will it help me to secure the job?
What drives people out of the Profesional is the low pay compared to the regulations and high mental work requirements put on CPAs
Is the pay really an issue?
@@jorusanubis6745bro no 6 figures is not low pay , we think we deserve doctor money lol
I see a lot of the big public US companies in private industry hire accountants from India and Mexico and force them to work "North American" hours just because they can pay them less because of the COL adjustments. The few US accountants/ CPAs that do get hired are called upon to be project managers to "babysit" their overseas counterparts and micromanage them by asking "where this report is" or " where are the deliverables?". Today's US accountants in private industry are more like PMs and not doing any of the "accounting" technical work.
I hope people continue to leave the accounting field so I (a new CPA) can capitalize
Exactly
It’s looking like you may get the opposite problem. They are continually opening up the cpa exam to international students and are working to outsource it. This is the main reason they dropped the written part of BEC, to make it easier for non English first speakers. Look at the number of cpa candidates in India for instance, that’s your competition. And they require a far less salary.
Working as an IRS Revenue Agent is a high pressure job for very modest pay. But over the years, the IRS has created a multitude of “Analyst” and “Policy” jobs which pay significantly more, with vague requirements and little pressure. Not surprisingly, many R.A.s have shifted to these cushy jobs, and the agency is having difficulty backfilling the accounting positions.
I work for the State as an auditor. The previous generation screwed up the accounting profession big time. Our agency has major retention issues. They want 150 hrs (MBA candidate more than likely) and a CPA license to make 52k a year 😮.
Hahahahahha. These firms are delusional.
At this point, accountants should form a union or coop
That sounds like a state by state issue because my state only requires a bachelor degree to work as a state auditor unless you want to move up to upper management. It's about the same pay as your state. I think we're starting to hit retention issues in the recent generation as the old generation starts to retire
Heard stories from people that used to work at big 4 accounting firms. The management expect overtime constantly, with low pay compare to similar education in other profession, and bad work life balance. I was told the only time they seems to be interested in offering you an raise or promotion is when you submit a resignation letter with another job ready.
Fewer accountants mean the ones that are / do become accountants can charge higher prices. I presume that's a good thing for the industry.
Hopefully! But that change is slow
Plus, as the boomer and older generations of accountants retire, the younger generation of accountants can sweep their clientele.
You ever heard of offshoring?
It took me forever to get that 150 hr requirements. I barely got my cpa license last year - at 45 years old!
I'm 38 taking bs accounting credits til December then cam finally sit 😢 all the hoops we have to jump doesn't make sense
As an MSA is tax and degree with accounting I picked the right degree for job security but I do also wish we got paid more. I’m unsure if I want to get that CPA license until I see some actual benefits for having it.
I know that I should be doing it but just the sheer will to do an extra year of school and the pay off sets each other.
This is why I just got my EA (Enrolled Agent). Own my own Tax firm and make my own hours.
That clip of the guy at the Dr. is hard to watch. Great video. Couldn't agree more that the lifestyle aspect needs to change. Thanks for the content.
I'm in the middle of learning accounting. This is new to me.
It's outsourcing and automation. A lot of A/P and A/R jobs are being outsourced to India and the Philippines. Yes, these are entry level jobs but these are very important jobs. Accounting college grads need these jobs to gain experience.
Regarding automation - a lot of the work can be automated and is in the process of being so. Look at every article or video regarding AI and Automation - Accounting is almost always on the list to be hit the hardest. And lastly, as others have mentioned, the pay. I honestly do not see the field lasting at all. And yet people are asking why there is a shortage?
What drives people out of accounting is that everyone in accounting is passive.Aggressive mean repressed sexually and take out their anger on staff
Don’t say that, I’m already sexually repressed and this feels like a dark foreshadowing. 😅
You are speaking my language my friend! Would love to sync up and have this discussion. The industry definitely needs a reboot to something better for the CPA!
It's literally just the toxic work environment in public and pay. That's it. Making it easier to get your CPA license is the worst possible solution.
I wish colleges would drop all these useless classes and focus more on the profession. Instead of reading Kant or learning about the dust bowl which is high school work we could have been taught more things a CPA should know or even learn some of the common accounting software. This would make the quality of new graduates so much better.
I agree.
This is what makes me hesitant to finish college
Yup their are far more skills an accountant needs, software skills, ten key typing skills, excel skills to name a few.
If you want a college degree you have to learn college stuff along with the stuff you learn in your major. Do you want a job training program or a college degree?
@@HoosierCanuk obtaining a college degree should make you ready to take on an entry level positions in your field. So I would say I would want both. Most of my useful skills came from my internship. However, after 2020 I assume it’s even harder for students to get them. Haven’t had interns in my office since then.
The 150 hour issue is not the problem - I wouldn't be looking to get out of tax AFTER years of being a CPA if it was the 150 hours...
What's more odd is that I question if there is any correlation between having a CPA and making more money? The one friend I have who never did his CPA makes about 50% more than me, I am in public and he's always been FP&A...
FP&A?
@@FujiMezufinancial planning and auditing im guessing?
Just subscribed, I’m starting my masters! Your videos are super helpful in helping me learn more about accounting!
Awesome, thank you!
Any topics you would like me to cover?
@artjogo getting a masters helped me!
I'm a supervisory accountant for the fed and I also side hustle to keep my tax and public accounting skills in check. I absolutely don't need a CPA to do my daily duties but for me it's more about my exit strat from the Fed. What advice can you provide for a mid to senior career accountant looking to become a CPA? I bough the Becker CPA and Superfast CPA exam prep but find it hard to make time to study with 3 kids, Fed job and side tax practice.
What's your yearly salary lol
@@vicvic2081 total comp package is close to 140k
I don't think you need a CPA.
I’m sure I don’t “need” a CPA but I think there may be some perceived value from the public. It will also make me competitive when it comes to government contracts. More than anything that’s the real driving force.
@@usnaccountant that's a good reason to get it!
This is so good Logan! Man its hilarious to me what the AICPA and all these other governing bodies will blame the shortage/pipeline problems on. its like uhhh yes blame that IG account thats it!!
Or the 150 credits. Blame em yesss thats it!!
Naww I happily got my Masters in Tax that catapulted my career trajectory, I was fine sitting for 4 exams to get my license, its a right of passage its fine.
What I was not fine with was doing all that and having a starting salary of $50K in a high COL state and working 70 hours a week. What I was not fine with was 5 years later after doing more or less the same I was at $88K while being beat on by schedulers while working 60+ hours and being in a toxic culture. That is the issue. Fix that and accounting wont have a bad rep.
Or yea continue blaming some IG account that is hacking the pipeline lol
I been working as a corporate accountant for a little over 20 years. I will say, not having my CPA (I am a CMA) has paid off really well
My relative is CPA, gets paid big time 300k plus..
CPA board need to give out vouchers to motivate folks into accounting.
I'm about to go into a MACC personally to switch careers. Searching online often comes up with lots of personal accounts of people that highly pessimistic. Personally I just want a stable job at this point in my life that pays decent and lets me do my thing. People are so self righteous nowadays with career. Certain situations it's 100% valid, many others it's just people being angry for no actual good reason.
Previous accounting student here who made it to junior year and then realized I actually hated it and had no interest in it. Too many negatives within the profession compared to the supposed positives. None of the accounting students I met actually enjoyed what they were learning, they were only doing it for the money, and a lot of them seemed as depressed as I had been for a long time. I switched to IT and I’m much happier now. Until the industry is overhauled, I don’t see things getting better from what I experienced.
I completely agree, public accounting needs to change. I've been in this industry for years and it doesn't even pay people enough. It is to a point that if I ever have kids and they want to become CPA i'd tell them don't do it. If this field has to die to let those partners and clients know that we are not merely getting paid enough then so be it.
If the 150 credit was the problem. Then why is the 4 years of medical school not stopping people from becoming doctors?
Partners know there is a serious staffing shortage across the country and they're holding onto their treasure for as long as they can get their hands on the vested pension that pays out ~18-25M over their retirement years. They don't really care if the industry will be in shambles 5-10 years down the road as long as they can get their bags. Same goes for the upper management in industry. Just holding onto the current structure that rewards the top as long as they can. They're just motivated by their agenda just as we are. It is unfortunate but it's merely just a symptom of late stage capitalism where everything is coming to a decline. Best we can do is fight for better environment but not get dissapoint with the natural course of event.
About to graduate this July with an accounting degree and so far had no luck with entry level accounting jobs. Most of them want big 4 intern experience or 3-5 years in the field. I didn’t have the opportunity to get an internship cause most wanted me to relocate and didn’t even offer housing accommodations so I turned most of them down. Even applying to bookkeeping or AR/AP roles want 5+ years of experience. Although I haven’t yet received my diploma I feel like I’ll be job searching for a while.
If there was really an accounting crisis, I would have a job already. I graduated college with my bachelor's in accounting 5 months ago and i still don't have an entry level position in the field. Every entry level position that i have looked at they want you to have at least a year or two of accounting experience which is crazy if you just graduated college.
How many places have you applied to?
Same here. Ive applied to over 500 jobs and still nothing.
@@taxtelegraf all over new England, I live in the state of Massachusetts.
@@123meyca I know dude it sucks!
@@ismaelpena8860 me too, im in MA. Its exhausting to think about so im increasing my education.
People get pigeon toed into a CPA, i was CFO and didn't have it. Public accounting is just one aspect of the profession.
Constructive advice: If it’s countable, like the number of persons, then use the word “fewer”; if it’s not countable, like sand pebbles on a beach, then use the word “less.”
Fewer people…
Less sand…
I hope this helps!
Thank you! I struggle with grammar 😅
Give me a Mach 1 Mustang, a photoshoot with Sydney Sweeney, a suspiciously large amount of dry ice, and I will solve the accounting image problem in a weekend.
(I will take the Mustang across the border and you will never see me again😂😂)
Also note that countries like the Phillipines have a decline in accounting grads too, you already see some staffing firms do bidding wars for Pinoy CPAs. The decline in new CPAs is also taking into account global numbers too.
I didn't know that!
The pay and wlb needs to get better. Period
Unfortunately those of us on the job have to make up for the work not being done by the open positions. The company does not want to pay for the extra hours and work. The deadlines don't change if you are under staffed.
Why am I seeing these videos right after my busy season ends?
i regret ever getting into it. they pay is at the bottom of all professional jobs. dont expect to make more than $65k initially, basically the poverty line. the degree is worth less than soiled toilet paper. you get treated the worst in any company. they see you as a waste of money because you are just overhead. and because of that, they keep dumping work on you, constantly, the longer you stay. ultra mega long hours too. expect to work at least 12 hours a day without getting a dime in OT pay. that means you are basically working for minimum wage. also companies abuse their accountants more than any other field. accountants always feel like they are working for a toxic company. yes its easy to find another job, but who wants to continuously do that all the time? you literally have no life because of the long hours, and are not respected. everyone outside the field feels compelled that you can do their taxes for free. i should have become a real estate agent instead. what a horrible field accounting is. imagine being forced to sit in a chair for hours and hours day after day. guaranteed you will develop chronic illnesses.
😵
Ummm, I'm gonna need you to go ahead come in tomorrow. So if you could be here around 9 that would be great, mmmk...
Do another video on the best Jobs in Finance or best degrees kids could do or what u would have done if it was possible to reverse time
Don’t overthink this…is not that complicated pay more
I’m switching careers to accounting
CPA exams are just so hard.
If ur an accounting major and find the cpa exam difficult, then you must be really stupid. My bachelors was history and masters in tax, along with a few accounting courses at the community college. I passed on all 4 within the 18 months
The number of CPA students is dropping but it is in contrast to India and Pakistan because students pursuing the chartered accountancy profession are increasing and hence there is a high shortage of places for trainees in the top category firms. As a CA student from Pakistan who just completed my CA inter just now, I am concerned about the lack of opportunities for me to go to the Top category firms. And also these firms take work normally up to 8-12 hours a day and also give a monthly stipend of up to 70 US dollars....
I want to know your insights about accounting and information system does the job who chose this degree differs from bs in accountancy. Because the information I get in internet 8s very vague.
Sorry I don't have experience with that!
At a lot of schools, taking a dual concentration in those two will get to 150 credits. But at that point, it will be cheaper to just do accounting and then take credits at community college
Would be good to cross interview or research what the experience off ACCAs are like
It would be nice if I could name my salary to accounting firms if they are so short staffed.
It's a simple supply/demand problem. Increase pay and the supply will come.
Not that easy because first you have to increase for everyone who is already there, before you can offer it to new recruits. People coming in are getting paid more for knowing and doing less
@@holelee7834not really… hiring departments usually have more budget then retention… it happens all the time
Where can i watch that full video of him talking to a doctor?
It's a netflix reality show about a hospital
@@taxtelegraf what’s the name?
So should we learn data analytics also while preparing for CPA exam?
Why data analytics?
@@taxtelegraf lol i don't know but they say CPA'S need to equip themselves with relevant tech.
Which IT skill you recommend that's useful ??
Many universities in the US are offering masters in accounting and data analytics to get it STEM certified.
I also heard this @@manavhir9161
if you have a cpa license from other countries, it's a win-win.
Btw marketing and finance IS part of accounting. CPA is superior in all realms of finance and the marketing world.
if there are so much shortage, then why CPA fee is so high??
You mean low?
Bro pls reply what would recommend now CPA USA or CFA
What's a CFA lol 😆
Public accounting has a very difficult "barrier to entry".
Not all Accountants are in practice (Accounting firms) and not all countries use CPA. Here in the UK I don't think we have an Accounting crisis to be fair.
UK barriers to entry are a lot lower than the US and UK pay is really really low compared to US.
I think everyone is more infatuated with the tech field. The number of computer science students have gone up drastically in recent years. There is a huge surplus of people trying to enter software engineering and data science, making competition fierce in those fields. I'm one of those people who moved away from those fields and into accounting. People seem to think accounting is a major step down from tech. But in South Africa where I live, chartered accountants (equivalent of CPAs for my USA counterparts) are highly respected and paid extremely well.
After receiving my BS in accounting i went into the private sector, never public accounting. I wanted to take the CPA exam but didn't get around to it. Later in my late 30s I received a masters in Finance. For me, private is the way to go, I've worked my way up. Been a controller for several companies.
Big corporations shift most of the accounting jobs to India, Singapore, Ireland, and Philippines.
why the heck would anyone go into accounting? Every job post for an entry level position says they want 2+ years of experience, a bachelor's degree, and a starting salary of 40-50k. Subway in my town pays $19 an hour which means you don't fall into the salary trap and will actually make more if you work the same hours as an accountant will. I even see job postings for Staff Accountants that require a master's degree and a CPA with a starting salary of $55k. I understand there is a high ceiling in accounting and I am in no way advocating the fast food industry but an ambitious kid out of high school could be managing a location in 4-5 years and multiple locations within 6-10 years. Accounting used to be a prestigious career but they are just laughed at by tech and finance due to their barriers to entry and awful salaries.
The emphasis on the 150 hours seems to me to be a function of the current concern around cost of education. What people SHOULD be asking is “why was it that we moved to 150 hours?” The fact that we’re getting so far removed from the complete restructuring of the PA landscape in the wake of Enron, WorldCom (I mean we went from a Big 8 to Big 4, Arthur Andersen went POOF overnight!) is sad, not just because it makes me an Old.
So where’d you get the clip of the accountant at the doctors? 😂
it's a show on netflix! I already forgot what it's called... lol
I decided to take classes to get a cert in bookkeeping. I had to take Accounting courses. OK. Then COVID hit. Classes were moved online. No lectures. No teaching. Absolutely nothing. They offered an online study group, but they just gave us the answers. The department head said that THAT was no way to learn accounting, and promised his class would be better. He had an online weekly meeting where all he did was give us the answers. No teaching. What did I learn? Become a teacher.
I was looking to get into accounting as I start college next year but now I'm having second thoughts
CMA doesn’t require the 150 hours. Just a bachelor degree and 2-3 years of experience. You don’t need to be a CPA to be a controller or a CFO.
I am cpa eligible but any of the study programs (Becker, etc) cost over two grand and each of the tests costs 350-400 a pop. They build the tests to actively make you hate yourself with a 50ish percent pass rate per test. So you’re taking an average of 6 tests. 4500 to 5 grand to go from where I am at with my 150 hours to cpa. Some companies may pay for it or reimburse. Mine does not.
CPA firms are fighting for recruits and are adopting hybrid models of 2-3 days working from home. Electronic information in today's age make this possible.
I have thought of getting a degree in accounting a second bachelors. I got my first degree when the pandemic hit in spring 2020, and I was 35, at the time. I feel the cause of this is the pay, you have to live in a big city, automation, and outsourcing. The accounting profession might be done because of things like intuit or Tubo tax and you just plug in your tax info on forms online and it's all calculated for you. The older generations don't use computers and so they are more of the need of customers in accounting., Once they die off and accounting programs become easier to use for complex taxes then the need for accountant's won't be as needed. Most careers and good paying jobs now require more experience and expect the job of 2 or 3 people with pay that is equivalent to pay at fast food.
I also loved history and did not have a good experience when I earned my first bachelor's degree. What can I do with an accounting degree that is entry level, and will train you with no experience that has do with helping people with their financial problems?
Firms already outsource a lot of tax staff work to India. Tax might get slowly automated away, but auditing will always need CPAs legally speaking.
Tax is not the only thing accountants do. There are many jobs accountants do that isnt tax
@@ciello___8307 i say that because that is all I notice. I enjoy helping people but not on wealth. I wanted to get my bachelor's in accounting and in history.
It seems like every field is in crisis and no profession is worth it. Any advice?
Follow your heart
@@taxtelegraf Thanks
Start a business or online presence
@@123meyca thanks
I love ur humor why don't u do other niches like I don't know. One thing I know is that I'd watch it ur very funny and awesome to listen too
I am 27 with 5 years of non accounting work experience, will the CPA help me to make a career switch?? considering my work ex. I am a bit skeptical about it.
@@rohansaini8089 yes
So much work for average pay
Thanks for the content. I caught your interview on the Earmark podcast. You mentioned you have a template for price increases, etc. I'm following you here and on Twitter, and I would love to see any resources you have found useful! Please let me know how I can receive this. Keep it up!
Thank you, Curt! Find and message me on LinkedIn.
I will gladly become an accountant for private if they up the entry pay
It’s not just pay. It’s offshoring.
AI and pay, two major contributors to lack of interest.
You misspelled “candidates.”
Here I am can’t even get call backs. Some accounting shortage..
Perhaps AICPA should take example from ACCA's model and become a stand-alone qualification. Requiring college is outdated, college itself is becoming more and more outdated. Who wants to start a career in tens of thousands of debt, when you can self-study for $5k in total and get a more relevant qualification?
What is the likely of me getting a job as an accountant with no experience or internship? I’m 45 years old and thinking of going for my B.S. in Accounting.
100%
@@taxtelegraf I have a Bachelors in Public Relations and a Master’s in Elementary Education, so hopefully won’t have to take all the 150 hours required.
@@davidfernandez1354 If most of your other credits transfer and count as lower-level classes, you may need to take the core accounting classes. Some universities, such as Arizona State University, have an MACC/MTax boot camp for people without a background in accounting
@@davidfernandez1354 At the moment, I'm trying to speed-track my bachelor's (I'll have 84 or 87 credits by the end of the Fall Semester for 2024), with about 33 credits left after that in which I'll do a MACC.
This hiring of foreing labor to do work in rhe usa should be prohibited....but it wont
Theyll probably make it where we cannot work anywhere
Sadly instead of firms making things better, they’re just outsourcing more and more to India
Facts all the way. This is so true
The change is near. In 3 years or less from my home office pc, CoPilot will file my 1099s and LLC State and Fed returns and distribute K1s and on time. No more having to wait and wait for a call back only to endure sob stories and hysterical breakdowns. It’s pitiful
I doubt it but it doesn't hurt to hope!
We shouldnt even have to do our taxes. Most personal filing is done by the government in other countries. The IRS already knows how much we make
Intuit and turbotax is the reason why we have to do this shit
can you help me! Ive been in accounting for 7 years and never been promoted! staff that i help get promoted before me
What feedback have you received?
@@taxtelegraf none.
Accountants were aware of the intensity of the first 3 years in public, but were promised a job in a recession and growth to be a better job
2:25 No but for real through this guy is hot AF
That looks like an UltraTax monitor in the background.
I see only two outcomes. Either accountants start making more money or AI will replace them.
How about AI
To be fair - it’s expected that the aicpa would be filled with boomers. I’m a young cpa and see no reason to join the aicpa. Nonetheless, there’s still a huge shortage of accountants. Good for us!
Why is it expected?